AG should speak on the bid bond

It is important, we believe, for either the attorney general (AG) or the solicitor general to provide an opinion on clause 9(ii) of the Implementation Agreement signed between Energy Minister Phillip Paulwell and Energy World International (EWI), and whether it protects Jamaica's hold in the US$7.5-million bid bond EWI was asked to post when it was named preferred bidder to build and operate the 381-megawatt power plant.

There have been claims by respected public commentators and integrity advocates that Mr Paulwell failed to protect the bid bond when he removed its requirement from the electricity licence he granted to EWI, especially given the timing of that document.

However, the implementation agreement reiterates the need for the EWI to post a performance security bond within 10 days of receiving the electricity licence, and goes on to declare the licensee's agreement to "extend the period of the Proposal Security ... in the amount of one per cent of the expected capital cost of the proposed facility for a period of one month from April 17, 2014 or until the Performance Security Deposit ... is posted by the licensee, whichever is first in time".

Given the circumstances, the situation with the bid bond needs to be clarified.

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